Txbit, a cryptocurrency platform, has announced its closure on September 14, 2023, due to increasing regulatory challenges and market pressures.
In an announcement on Monday, Aug. 14, a Netherlands-based cryptocurrency exchange Txbit revealed it is ceasing operations by Sep. 14, 2023.
The fundamental reason behind Txbit’s shutdown is the volatile nature of the crypto market, compounded by increasing regulatory uncertainties globally, the company said. “We began our journey with a distinct vision, but regrettably, the current environment prevents us from continuing,” the official website states.
This state of flux has resulted in skyrocketing compliance costs for platforms like Txbit. Such financial pressure, combined with shrinking profit margins, has made their ongoing operations unsustainable.
To ensure a smooth transition, Txbit has scheduled an offline period on Aug. 14 for about an hour, during which all active orders will be canceled. After this, the platform will deactivate its trading function, focusing solely on allowing users to withdraw their funds. The company underscores the importance of withdrawing before the final deadline of 12:00 PM UTC on Sept. 14, post which retrievals will become impossible.
While the decision has sparked concerns about Txbit’s native token, the company has taken definitive steps. A staggering 95.65% of the non-circulated Txbit tokens will be burned in the immediate future.
Further, for certain coins, Txbit introduced wrapped token contracts. The company plans to liaise with the developers associated with these projects to ensure a seamless transition of wrapped tokens and their associated contracts.
The closure of Txbit serves as a poignant reminder of the challenges that cryptocurrency platforms face in a world where digital currencies are still finding their footing.